Nasdaq has submitted a filing to the U.S. Securities and Exchange Commission intending to allow the trading of tokenized versions of stocks and ETFs alongside traditional securities.
The Importance of Tokenized Stocks
Trading tokenized stocks on the same order book as their traditional versions marks a shift toward a hybrid model where blockchain-based assets are recognized as part of the national market system. Nasdaq emphasizes that tokenized stocks must retain the same rights and privileges as their underlying securities, which includes voting rights and investor protections.
Regulatory Angle: SEC and Congress
The filing arrives while the SEC is still debating how to handle cryptocurrency on national exchanges, and as Congress drafts a framework for tokenized assets. The approach lawmakers take matters as Washington is moving toward a more pro-crypto stance. Comments from Citadel Securities highlight the need for maintaining investor protections within these new frameworks.
Competition Among Major Players
Nasdaq is not alone; Coinbase is exploring tokenized equities, and JPMorgan is looking into tokenized deposits. This indicates that both major incumbents and crypto-native firms see tokenization of real-world assets as the next frontier in the financial system.
Nasdaq's filing could set a precedent for trading tokenized assets in the U.S., establishing new standards for the international market. If successful, tokenized stocks may become an integral part of the financial system.
